The List Growth and Engagement Podcast is a series of interviews with recognized leaders in email list growth and engagement. Need-to-know insight on growth strategies, deliverability and list hygiene from the field's recognized experts is broken down into focused chunks of easily digested information.

Interviews are conducted by members of the Email Experience Council's List Growth and Engagement Roundtable. Hear directly from the trenches on what to do and what not to do, to grow and maintain a robust email list.

Stay tuned as we'll be adding more podcasts featuring email marketing experts.

We all want a big email marketing list, but we also want to respect subscriber interests, protect the assets of our email program and maintain a solid foundation for revenue growth.  There is a bit of a high wire balancing act sometimes when our organizational goals include having *both* a large and active file.

At this month’s meeting of the eec's List Growth & Engagement Roundtable, a group of industry practitioners discussed a common – and often uncomfortable – situation of email marketers everywhere.  The boss says in that big, growly voice, “Get me a big file of email subscribers - now!”  Yet, the types of tactics that grow a list aggressively can have real risks for response, loyalty and inbox deliverability – which puts your entire program in danger.  No level of growling will change that result.  Here are some ideas from the group about how to approach this somewhat tricky balancing act.   

“I remember a million member push program from one of our clients that was successful in building a big file, but created inbox deliverability and sender reputation problems for many, many months,” says Nancy Harris, Sr. Manager of Deliverability at Fishbowl.  A restaurant wanted to get one million subscribers in their restaurant e-club (a loyalty program).  The promotion was intended to encourage current members to invite lots of friends in order to win a big cash prize. The new member would receive a free meal for joining the program.  “It worked on one level,” Nancy says.  “It was successful in reaching a lot of people and they did reach their goal of one million subscribers.. 
 
“The problem was that the list quality was terrible.  We immediately saw blocking and blacklisting due to unknown users (bounces) and complaints, which took us more than a few months to correct.   Not only did this client have ongoing inbox deliverability issues, but there were also questions about the quality of the people who became new members.  They were not really interested in dining at this restaurant regularly, or receiving ongoing email communications from them.”
 
If that restaurant did the math, they may find that this program was successful in the short term. It cost them some number of tens of thousands of dollars to set up and run the promo and they got a million new members.  Remember, too, that email is a lot cheaper to send than printed postcards – and it’s very efficient in terms of time to market, so this ROI was returned quickly. The cost per new member was very small.    Short term, that could make sense.  However, long term, they destroyed their sender reputation and did not receive revenue from the majority of the new members – these people were not committed to the restaurant and did not frequently dine there.
 
This business cycle issue haunts many an email marketing decision, says Stephanie Miller of Return Path.   “Short term, you can broadcast to your file and you earn revenue.  Long term, however, you may see serious consequences, all of which have a real cost.”
 
Consider these factors in determining the cost of the new subscriber acquired through a sweeps or promotion like the million member push described above:

1. Depressing your sender reputation due to high complaints (which limits your email marketing opportunity for all subscribers by limiting access to the inbox) – this could be a drop in inbox placement of 10% - 50% of your file every time you mail;
2. Churning your file – people who leave by complaints, unsubscribe or filtering – and need to be replaced at some cost per subscriber;
3. Lower loyalty of good customers by bothering them with irrelevant promotions – the cost of this could be a penny a person or it might be higher depending on the type of brand relationship you need for your business;
4. Losing the opportunity for future email marketing because they unsubscribed, complained or are just ignoring you from now on.

“When you calculate the true cost of the aggressive list growth program, factor in these costs as well.  And then make a business decision based on long term customer value and satisfaction,” Stephanie says.
 
“We run into this balancing dilemma when we suggest a list hygiene or list cleansing audit,” says ExactTarget's Nate Romance who is also co-chair of the Roundtable.  Most clients see value in doing a re-engage and send a win back campaign to the portion of the file which is non-active, Nate says.  “However, many will opt for reduced frequency as opposed to suppression of those subscribers who have not responded in a long time. That allows them to keep a big number for list size.”
 
Nate says that when he starts to discuss these issues with marketers, some see the value in keeping “dead” or “nearly dead” records on the file because with a baseline of zero, any interaction will be a rise in response.  However, usually it takes more than just continued hammering at the inbox door, he says.  “Sometimes sending the best of the best offer that month rather than weekly will increase response rates,” he recommends.  The rest of the group agreed, however, that dialing back frequency has not ever significantly improved response rates.  “The risk to your sender reputation is real when you keep non responsive records on the file,” adds Stephanie of Return Path.  “I never think that risk is worth the small chance that a couple people will respond at some future point.”
 
Nancy from Fishbowl adds that a similar practice is common when marketers try to build a list quickly – they sacrifice quality for quantity.  “I see a lot of what I call ‘deceptive list building,’” she says.  This is when a marketer does a sweeps or promotion with vague email permission just to build the file quickly.  “That lack of express consent can be a problem for deliverability and response rates and has a real cost for determining the value of such a venture.”
 
Such practices often are not well measured, and so it’s hard to determine the impact – good or bad.  “When someone gets more aggressive they might do campaigns that are intended to build the list quickly and then they don’t track by source so that we can’t always associate the promotions with complaints and response (or lack of),” Nate from ExactTarget says.  “I always recommend that we tag these folks or track source so that in six months we can check the quality of the list and the real success of the campaign.” 
 
“It’s so interesting that we marketers are good at thinking about LTV of a subscriber when we pay for them – as in a media buy or PPC search campaign,” Stephanie adds. “But when we acquire email subscribers through these “organic’ measures, we don’t always track by lifetime value, we track by the initial sign up.” 
 
Nancy agrees.  “The value of someone when they are new to the file may be different than the same person six months down the road.  We often see that there comes a point, especially for smaller files, that the file stabilizes at a certain number because of loss. New subscribers come in at a steady pace, but subscribers are also lost due to list aging and fatigue,” she says. 
 
That is a very good argument for making sure that list growth is an ongoing commitment, and not a onetime promotion. 
 
What are you doing to consistently grow your email file with active subscribers? Do some of these points resonate? Please comment below, or join the eec List Growth & Engagement Roundtable to participate in future discussions like this.


- Stephanie Miller
Vice Chair, eec
VP, Global Market Development, Return Path

When it comes to creating a successful email campaign and achieving the best possible delivery rate, your reputation is your key component.  A good reputation will keep you in the various ISPs' good graces, and a bad one can get you banished, blocked or blacklisted.

• Number of spam complaints generated – too many complaints lead to being blocked by ISPs
• Volume of email sent – dramatically boosting frequency can cause your reputation to plummet 
• Method used to process bounces – invalid email addresses need to be removed promptly as part of essential list hygiene
• Sending to invalid or old email addresses – could cause your campaign to be caught in a spam trap at some ISPs
• Appearance on any blacklists

• The delay between senders receiving a complaint and unsubscribing the complainer
• Repeat complaints 
• Complaints tracked to ISP/mailbox provider 

 

Not every email marketing best practice is an obvious one. In fact, in our experience at ClickMail Marketing, there are quite a few best practices that companies seem to look over or deliberately ignore. The result? The opposite of best practices, or what we kindly call "common email marketing mistakes" rather than worst practices.

In an industry where a half a percentage point can make or break a campaign, it's our opinion that tweaking and optimizing every possible factor is worth the effort. With that in mind, I asked our staff to compile a list of the top 10 mistakes they see when deploying email campaigns on behalf of clients. The good news is that they only came up with nine. And the even better news is that these are all easy best practices to adapt and adhere to.

Below are the common mistakes seen by the staff at ClickMail, and what you can do to avoid them:

Common email marketing mistake #1: Sloppy Copy

• Check your spelling. Copy and paste into Word and run spell-check if you need to. Also check the spelling in your links. If your URL is wrong, so are you.
• Read the copy. Don't scam, skim or skip over. Reading is the only way to ensure proper use of language like "their" vs. "there" vs. "they're", missing words, incorrect punctuation or poor sentence structure. Best practice: Print it out to read on paper. Even better best practice: Read it out loud.
• Employ a second set of eyes for final review. Once you've written, read and edited the same piece of content many times, it is no longer fresh to you and errors are easily overlooked. Ask someone else to run spell check and read the copy. You may be surprised to see what you missed.

Common email marketing mistake #2: Crummy Coding

• Set the pixel width to 600. This prevents the need to scroll to the right—and the potential to lose interest if someone feels they have to do too much work to read your email.
• Don't use CSS (Cascading Style Sheets) in your HTML coding. It is stripped out by many ESPs, meaning your message can be lost. Even if you've spell checked it and done all the best practices described above!
• Many ESPs also suppress images by default, as do email clients (about 80%). Do not create your email message out of one big image or your subscribers may only see a blank page with a little, tiny red X. If you use any images, to be on the safe side, utilize a View Online feature so they have another way to see images if they are suppressed.

Common email marketing mistake #3: Cold Calls to Action

• Your call to action (CTA) should be in text format, not an image because—as mentioned above—images are suppressed by default by many email service providers and email clients.
• Include two to three instances of your CTA above the fold (in the first 300 pixels). Make sure to include at least one graphical and one textual CTA.
• The top one-third and the left-most area of your emails are the most valuable real estate. Try to place a CTA those areas, in text and as minimal images.

Common email marketing mistake #4: Poor Subject Lines

Your subject line should be seven words or less (or 35 characters). Most people know this but might not know that the following conditions in a subject line can be flagged as SPAM:

• Percent of Capital Letters: Too many uppercase letters compared to lowercase letters
• Repeating Capital Letter: Too many upper case letters in a row (e.g., SALE)
• Gaps: When the words have gaps between letters like s*t*y*l*e
• Repetition: When letters or characters are repeated (*****)
• Special Character Flag: Overuse of special characters (e.g., & $ # @ ( )[ ] !)
• Punctuation Flag: Too much punctuation (…) or the type of punctuation (!)
• Word/Space Ratio: Spammers use blank spaces to catch the recipient's attention resulting in a high ratio of spaces to words
• First Character Flag/First Word Flag: Subject lines starting with a special character or punctuation. Words like "Free", "hey", "Sale" etc.

Common email marketing mistake #5: Obscure "From" Label

Your From address is key information used by subscribers to determine if your email is spam or not. If it's not relevant or recognizable, they may mark it as spam, or just delete it without opening it.

Common email marketing mistake #6: Floating From Address and/or Domain

Keep a static "From" address and/or domain, and ask to be added to the recipient's Safe Sender list at the top of each email.

Common email marketing mistake #7: Lazy Lists

• Utilize the Forward to a Friend (FTF) feature to organically grow your list.
• Practice good and consistent list hygiene. Most people know to honor opt outs in 10 days to be CAN-SPAM compliant but you should also clean your list(s) of hard bounces after each send, plus monitor soft bounces and remove from your list as needed.

Common email marketing mistake #8: Competing Links

Don't include competing links, period. Unless it's a newsletter, most emails should be single subject with a single call to action. If it's a sale, link to the appropriate sale items. If it's an invitation, link to the registration page etc.

Common email marketing mistake #9: Unfair Unsubscribe

The unsubscribe link must be the first step, per CAN-SPAM. Don't make people jump through hoops to opt out.

Now, I hope you read the nine common email marketing mistakes above and nodded your head in agreement, confident you're innocent of all.  If not, if even one of those nine listed tripped you up, go fix it now and increase your ROI later as a result.

 

- Marco Marini, President & CEO, ClickMail Marketing

Marco Marini is an acknowledged expert in e-marketing with over a decade and half's-worth of experience in the field. Before taking over as CEO, he was CMM's VP of Marketing & Operations. Marini has also held key marketing positions with CyberSource, eHealthInsurance, DoveBid and IBM Canada.

Sponsored by:

The Direct Marketing Association's Email Experience Council signed up to receive promotional emails from 120 of the top online retailers tracked via the Retail Email Blog. Findings indicate a trend toward richer subscription processes.

One highlight of the report shows that the percentage of retailers using only a one-click sign-up from homepage method to collect email addresses declined to 51% this year from 63% last year. That shift accompanied increases in the amount of data collected from new subscribers. Research also demonstrated that the number of retailers providing sample emails and allowing subscribers to choose email topic preferences was up.

"The old adage applies here—you never have a second chance to make a good first impression," says Dave Lewis, chief marketing officer of Message Systems. "Your opportunity is to convert a prospect's initial interest into a long-term, brand loyal relationship. Your challenge is not to 'kill' that interest (and the opportunity) with an intimidating or intrusive subscription process."

This year retailers are also putting more focus on list hygiene. Thirty-eight percent of retailers ask subscribers to confirm their email address by re-entering it, up from 27% last year. Also, 5% of retailers now use a confirmed (double) opt-in process, up from 3% last year, which also improves list quality.

Retailers are also taking greater advantage of their email sign-up process to promote other channels such as direct mail, blogs and RSS feeds. For the first time this year, research indicates that retailers are promoting SMS subscriptions, social networks and widgets along side or within their email programs. While the percentage of retailers promoting those new channels is currently small, it signals a new trend which is expected to grow significantly over the next year.

"Communication behaviors and preferences have changed," says Lewis. "Virtually all of us utilize multiple channels of communication, both online and offline. And how we want companies to communicate with us depends on the nature of the message, where we're at and our personal preferences. Yet, companies have badly lagged in their ability to deliver messages through our channels of choice. So I'm very pleased to see this trend developing, even if just in its infancy. It means we're moving beyond defining 'relevancy' just in terms of the content of the message. It means we're getting closer to realizing the direct marketing mantra of delivering the right message at the right time in the right place."

Other key findings from the study include:

● After falling from 27% in 2006 to 8% last year, the percentage of retailers using sign-up incentives rebounded to 13% this year, despite growing concerns about the quality of subscribers that are attracted by sweepstakes and other incentives.

● With recent evidence suggesting that putting privacy policies front and center during the subscription process actually reduce sign-ups, only 36% of retailers mentioned their privacy policy this year, down from 45% last year.

● Despite quicker subscription fulfillments overall, 29% of retailers took 15 days or longer to honor opt-ins or failed to honor them all together. That figure was the same as last year.

Get the Full Report
Visit the Whitepaper Room to download the full 39-page report, which is free for eec platinum members and available at a discount to eec gold and silver members. Not a member? Learn more about becoming a member of the Email Experience Council.

Are you happy with the structure and performance of your email program? If you wish you could just blow it up and start over, we dare you—no, we Double Dog Dare you—to consider this challenge from Loren McDonald, vice president of industry relations for Silverpop:

Start your email program over from scratch. Shut the door, turn off your phone, IM and Twitter, and get out a plain, old-fashioned sheet of paper or clean off the office whiteboard. Ask yourself these questions: What would I do differently if I could start our email program over? What am I doing purely out of habit or because everybody else is doing it? What do I wish I could do but I can't because I don't have the budget or backing from management?

As you stare at the blank page or whiteboard, ask yourself these questions:

● List growth: Are we focused on quantity rather than quality? Are we using questionable acquisition methods just to hit some arbitrary list-size targets? Are we still using pre-checked boxes and single opt-in because my boss couldn't care less about spam complaints, list hygiene and delivery rates?
● List churn and inactivity: Do we understand how active our database is? From one-third to three-quarters of our list is likely inactive; so, what are we doing to reactivate those subscribers that have tuned us out? What programs do we have to deliver greater value to our loyal customers? What can we do to minimize unsubscribes, spam complaints and bounces?
● Design and format: Are our image-heavy emails with lots of administrative information located above the fold still the right approach? Is it time to start from scratch and have an email-design professional create a template that renders well on mobile devices and in preview panes with blocked images? Should we redesign our masthead and navigation links to better correspond with the actions our subscribers want to take?
● Welcome program: Is it time to chuck the text-only confirmation email for a well-designed, multi-message welcome email program?
● Message types: We've been sending the same basic emails for the last two years—our "Weekly Specials" email and monthly "Close Outs." Should we blow this up and let subscribers select different categories and frequencies? Can we add a slew of new email types—birthday specials, reminders, surveys, refer-a-friend promotions, geographic-targeted messages, educational or tip-oriented emails, etc.? Can we wrestle the transactional emails away from IT and design them to cross-sell and up-sell?
● Batch-and-blast: Is it time to stop whining, "How can I move to a lifecycle-, behavior- or trigger-based approach when it's all I can do to get the weekly batch-and-blast emails out the door?" Could I swap one or two batch-and-blast emails a month so I can start testing some more targeted approaches?
● Metrics: Are we tracking the right performance metrics? Our open and click-through rates are doing well, but my boss doesn't seem to care and wonders why we spend so much time on email marketing. Is it time for me to tackle proving the contribution of email to lifetime customer value, cost savings and direct ROI?
● Incentives: Have we gotten hooked on incentives —free shipping and 10% off? Should we test some targeted emails sent only to people that clicked on specific links and use no or reduced incentives to see if we can improve our margins?
● Preference centers: Our unsubscribe page is so ugly and doesn't offer any alternatives. Can I get some design and Web resources to create a worldclass unsubscribe/preference page? Speaking of preference centers, can we continue without one?

If you take up this dare: Let us know by commenting below. Did you overhaul your email completely or just tweak it here and there? What's the first thing you would change about your program if you could? Finally: Which of these changes, if any, could you actually make in your present program? And if you have a Double Dog Dare for the eec community, let us know about that, too.

–>See more Double Dog Dares.

I want to share something inspirational that's happening in the email industry (Oh, and you can learn some best practices too!). It's a recap of the Email Experience Council's current Nonprofit Project. The project originated as a manner to enable peers and competitors in the email marketing industry to put business aside and work as a team to create the best email efforts for a good cause.

In 2007, the eec selected the Women's Bean Project as their project focus. Stephanie Miller, from Return Path, volunteered countless hours to lead this initiative and its team on behalf of the eec. I spoke with Stephanie about this effort to get the inside scoop on the project:

WHO IS THE WOMEN'S BEAN PROJECT?
The Women's Bean Project (WBP) helps women break the cycle of poverty and unemployment by teaching workplace competencies for entry-level jobs through employment and by teaching job readiness skills in their gourmet food production business.

WHY WERE THEY A GOOD CANDIDATE?
The WBP was sending one-off donor and volunteer announcements from a database created in FileMaker.

The WBP came to the eec with the following needs and goals:

1. Efficiency: Communicate effectively and efficiently with donors, volunteers and buyers (online and offline).

2. Impact & Choice: Retain donors and buyers through a higher number of touch points—ensuring that each touch is meaningful but also reducing costs and the amount of staff time required for each. Also, allow each customer/donor to select the method of communication (online or offline) that works best for them.

3. Cost Savings: Continue to reach every customer, even as the number of buyers increases by 30% each year (raising the costs of printing and postage significantly).

4. Practicality: Launch and manage a program on a very small staff—literally one-quarter of one person was dedicated to email marketing for all three audiences (donors, buyers, volunteers).

HOW DID THE EEC VOLUNTEER TEAM LOOK?
It is a testament to the email industry and the eec membership that very quickly we had 15 talented professionals volunteer to help, and several vendors step forward and to provide tools and services free of charge. ExactTarget provided a free basic sending license and also graciously donated nearly 15 hours of support throughout the project. Return Path donated a free rendering and deliverability account. Other companies represented included Blackbaud, BlueHornet, Future Integrated Marketing, Industry Mailout, Leapfrog Enterprises, Merkle and Wolters Kluwer Financial Services.

WHAT WAS ACCOMPLISHED?
The team focused on six specific areas to create the program—content, design, infrastructure and list growth.

Content Strategy:
● Identified ways that email can support the WBP mission
● Developed a content strategy
● Debated and finalized permission standards (DOI)
● Developed a calendar for promotions around the holidays, including promoting some local events and fundraisers
● Advised on sending an email counterpart for the annual appeal to donors (direct mail)
● Promotional content recommendations: (1) special offers: 10% discount for National Soup Month; (2) developed concept, copy and photography for a Valentine's Day email that would have viral impact; and (3) developed a year's worth of promotional themes based on holidays in order to boost sales during non-peak months (e.g., soup sales in summer are very slow)
● Set up Google Analytics so WBP could measure success of the email program for driving sales and page views
● Helped train the WBP team to review campaign results with an eye toward optimization

Design:
● Developed wireframes for four types of emails
● Designed templates for newsletter, postcards, DOI/welcome and donor appeals
● Loaded the templates into ExactTarget and tested them
● Helped launch an inaugural issue—which included list hygiene and deliverability with an old file, as well as an opt-out strategy for the existing database

Infrastructure:
● Worked with the team to set up an ExactTarget account
● Upload the templates; Access the self-service training
● Testing and mailing
● Course Correction: Aligning with with Yahoo! Store and cleaning up templates

List Growth:
● Starting point: 75% valid records
● Developed organic, offline and viral list growth ideas
● Recommended ways to optimize data capture on the website
● Reviewed the subscription flow for permission clarity and growth optimization

Wireframe Sample:

HOW DID IT TURN OUT?
Here's a quick rundown of the results:

1. We launched a program! It is practical, earns results, garners the praise and kudos of subscribers, donors and the WBP Board of Directors and has legs—the WBP can continue this email program when the volunteer team disbands.

2. Subscribers love it! The inaugural issue of the newsletter generated:
● 32% open rates
● 15% clickthrough rate
● 3.1% bounce rate on new data (25% bounce rate on old list data)

3. Subscribers are great WBP customers! Page views from email subscribers are two times higher than other sources.

For more details on our work with the Women's Bean Project and past Nonprofit Projects, visit the Nonprofit Project page on the Email Experience Council's website.

—Jeanniey Mullen of the eec

We asked the Voices of Email to look into their crystal balls and foretell what 2008 had in store for the email marketing industry. Here are their predictions:

Stephanie Miller of Return Path:
#1 - Email Marketers, if you want to keep your job, segment your file. I was hoping that last year would be the year that we'd see more targeted, tailored, relevant campaigns and less batch and blast. Not sure that happened, although I was half right in that we certainly saw MORE segmentation and targeting than in 2006.

Why will email marketers lose their job if they don't do it now? Because the email channel is more expensive than ever, and there are too many risks to brand and customer satisfaction and loyalty. Unhappy email subscribers—all that dead wood on your file—is not just a missed opportunity, it's a liability. Engaging with those folks is going to take more time and effort in creative and list hygiene and segmentation than ever before. To get those budgets, the email marketer has to prove the channel. To prove the channel, the email messages have to be a lot more relevant. To be relevant, they must be segmented. Thankfully, the technology and best practices are already in place and proven. We just need to set our minds to it.

#2 - The Data Capture form goes multichannel. We'll see more and more email marketers open up their data capture form to include permission to contact via SMS and mobile marketing. Building up the database with these contact touch points will be increasingly important as more marketers start to test the efficacy of those channels.

#3 - Transactions will become touchpoints sometimes too hot to handle. More email marketers are going to push the envelope on turning transactional messages into marketing opportunities. The receivers and FTC will get stricter on standards, potentially causing trouble for some senders. With the need to dynamically create, message and track these messages, ESPs will aggressively go after the transactional email market to build their base and capture higher share of wallet.

Chip House of ExactTarget: Increasing focus on subscriber engagement. When emphasizing the importance of list hygiene, David Daniels of Jupiter Research often compares mailing the portion of your list that hasn't opened or clicked on your emails in several months to "flying an advertisement over a ghost town." Many marketers are realizing the benefits to their success potential via email by truly understanding which segments of their list are responding, and which aren't. The non-responsive segments drag down your deliverability and ROI, and waste your time. This is something that I like to call the "ignore rate." Marketers that ignore the needs of their subscribers, send irrelevant communications, or make other blunders leading to dissatisfied subscribers, drive a higher ignore rate.

Most sophisticated email marketers now closely track their open and click rates, and more are even tracking subscriber spam complaints by ISP. However, it is often what you don't see that can be most harmful to your deliverability and campaign ROI. More marketers are beginning to see the benefits of closely analyzing the portion of their customer base that IS NOT paying attention. By doing so they can better reactivate them, opt them in again, or discard them—all to the benefit of their response rates and ROI.

2008 is about flying hundreds of planes, towing just the right message, over hundreds of small cities.

Amy Bills of Bulldog Solutions: I think we will see some shaking out in the use of social media for lead generation. Right now, a lot of companies are really struggling to understand what works and what can be integrated into their existing strategies. Is a blog, a podcast, RSS, an online community, a presence on Twitter, Facebook, LinkedIn, etc. going to be worth the effort and resources? How can you even measure their effect on your objectives? And of course, what works for one company is not going to be the same formula for another. Some have the impulse to try everything. Others want to bury their heads in the sand and deny the landscape is changing at all. A third group is experimenting and trying to be smart about making good choices, thinking about what their prospects will respond to and how to make social media enhance what they are already doing.

After Paul Dunay joined Bulldog in November for a webinar on making sense of social media for BtoB marketing, he made a comment that really stuck with me. "[The question isn't] if social media is right for your company, but which social media is right for your company. And at this point in time and state of your company, you need to determine which social media is right for your company for next year. A year from now, the picture may look very different. And the answer to which social media is right for your company will be different for each company. My advice is look into next year with an eye toward experimenting with a few tactics to begin to get yourself and your team up to speed."

So, I predict that more marketers will ease into that third group, and start to get smarter about social media. And by "smarter" I mean more creative and experienced about how to make tactics work and measure their results, and brave enough to admit when a particular tactic might not work.

Tricia Robinson of StrongMail Systems: The email space gets larger and faster daily. With this growth comes change, and I predict we'll experience much change in 2008.

Automation Becomes The New Buzzword. We've lived through closing-the-loop, 1to1 digi-dialogues, and deliverability. Look for campaign automation to catch-on in 2008. We're seeing more clients rapidly move in this direction. Those that already have are realizing the time/cost benefits of auto-generated programs.

The Final Sunset for the Old Homegrowns. The replacement of the original homegrown system has been a trend since 2006. However, this year we'll see the last of the first homegrown systems built by Web 1.0 companies and those that thought "email is easy, we'll make our own." Some organizations will always custom-build, but most have done it on top of something more sophisticated than generic MTAs.

All Outbound Customer Email Includes Marketing. Even if it's the inclusion of a logo, all outbound customer email (transactional, customer service, promotional, etc.) will include a touch of marketing. According to MarketingSherpa in mid-2007, 90% of email marketers planned to overhaul their transactional email in the next 12 months. Not sure if they will meet their own deadline by June, but look for an improvement in the look of all outbound email. I'm not crazy enough to predict the death of the text email, but maybe next year.

Still More Acquisitions. 2004-2006 were large vendor consolidation years in our space. I argue that 2007 was the year of the IPO. Now with more cash and CNBC viewers to consider, look for Constant Contact and ExactTarget to make purchases that round out their offerings or extend their reach into new markets.

Unlike many, I like change. It's good to shake things up as long as the goal is always towards improvement. Happy New Year!

Chad White of the eec: 2008 will be the year that retailers and other B2C marketers increase the transparency of their email programs and relinquish more control to subscribers. In 2007 we saw more retailers allow potential subscribers to view a sample email before signing up. More also offered emails on different topics or allowed some level of content preference selection—which is key to elevating relevancy. Consumers are getting very used to having more control over how they're marketed to, and email will be forced to fall in line over time. On the upside, giving consumers more control over content and frequency, and being more upfront about those aspects of their email programs, should generate more lifetime value from subscribers. Although eventually we'll see this kind of control move to the front end, during 2008 we'll start to see it more and more on the tail end of the relationship when subscribers are fed up and trying to opt out. Rather than lose subscribers, more marketers will give up control over frequency and other elements to boost retention.

During 2008 we'll also see retailers pay more attention to content—product reviews, videos of product demonstrations and fashion shows, blogs, articles, podcasts, etc.—and do a better job of leveraging it in their email channels.

Following the announcement we made on this blog last week regarding the availability of the session schedule for the Email Evolution Conference, yesterday we released a more formal version of that announcement to the media, adding some new details. For instance, the conference's 34 sessions will include more than 85 speakers. Over the past few days we've updated the conference program with more of those names, which include executives from National Geographic Society, Conde Nast, American Express, Gannett Co., Allstate, Live Nation, Cisco, KeyBank and eHarmony.

We also promised that each of the 27 breakout sessions will include at least one marketer, so attendees can be sure to get real-world advice on everything from deliverability and list hygiene to acquisition and multichannel marketing.

In addition to all the educational sessions, we also announced that the conference will include an Experience Hall, with exhibits from more than 40 of the industry's top vendors and service providers, including Message Systems, Puresend, Habeas, and the conference's exclusive title sponsor, ExactTarget. The Experience Hall will feature special pods instead of booths, which will allow for better networking and make you feel less like a mouse in a maze of booths.

For more information or to take advantage of early bird rates, please visit http://www.emailevolution.org.

How do you value and report your email channel ROI to C-level executives? Some companies have been very successful in reporting how email channel initiatives generate incremental revenues—such as the average ecommerce business with 10%-30% of annual sales revenues from its email marketing program (i.e., for a large retailer that is $25-35 million per year). However, most organizations have still not accounted for the many cost-savings email breeds nor do they include, for example, hold out groups to demonstrate the impact on Lifetime Customer Value when email is removed.

The time is now to advance our accountability and success in showcasing the full value of our efforts and their impact across all channels in the marketing landscape. The Direct Marketing Association published an economic-impact study which stated, "The ROI for email marketing was $57.25 for every dollar spent. The ROI of all non-email-related online marketing was $22.52, less than half. And yet marketers only spent around $300 million on email marketing efforts, compared to $12 billion for non-email-related marketing—$12 billion to get a return that is less than half of what can be achieved in email."

How can we come together across media channels to report a more complete picture to C-level executives (CPA, Revenue, AOV, Satisfaction, LTV)? Thoughts? Ideas? Comments? —Barry Stamos, senior director of strategy, Responsys

The Voices of Email had this advice:

Chip House: This, I believe, is all about human nature. We all gravitate to the things we know—to our comfort zone. So when the DMA reports the latest in a string of statistics that shows higher ROI for email, it doesn't really surprise me. It also doesn't surprise me that C-level execs (often even CMOs) seem to forget email when it comes to doling out marketing spend. Their comfort zone drives their marketing spend allocation, and unfortunately their own CFO's aren't calling them on the disconnect. Ultimately, shame on both of them.

Direct marketing, and online marketing specifically, is inherently very measurable. Take keywords; you can easily track impressions, clicks, conversions etc.—and choose from multiple tools with which to do so. Banner ads—same thing. In fact, with banners, your media buyer/or network takes care of most of the targeting hassle. Perhaps offline media, as well as other online media, get more respect from the CMO simply because they are easier to grasp and don't require the strategy, planning, list-building, deliverability expertise, etc. that a successful email campaign requires. So, not only do we gravitate to our comfort zone—we do what's quick and easy. Email marketing often isn't quick or easy, and to many it carries a stigma.

So how do we value and report the high ROI of our email channel in a way that resonates with a C-level exec? First, you'll need to show him the stats. Show him all the stats. The DMA number above is just the starter. Another showing the disconnect for online vs. offline spending, from the folks at Forrester, shows that though people spend 29% of their time online, it gets just 8% of the marketing dollars. Disconnect? Umm, yeah!

Second, prove it to your CMO yourself. Monitor your own spend on a handful of offline and online media and see it for yourself. If you're not tracking ROI individually yet, you're not doing yourself any favors.

Stephanie Miller: Good for you, Barry—this is exactly right. We as marketers have hidden behind the "email is cheap" myth for too long. We've dug ourselves into a budgeting hole. We promoted email as cheap, so it got a small budget. When we were charged with making the channel earn higher return, we just sent more email—not better, more targeted, more relevant email, just more email—because there was no significant budget hit. Now, when revenue expectations for the channel are growing, we find that we have to apply our marketing skills again—inventing and optimizing compelling subscriber experiences in order to generate growing revenue. This requires a budget for creative, testing and analytics in addition to the commoditized fees for delivery and list hygiene. It requires that we consider the email channel for more than just broadcast promotions, but as part of a multichannel experience that includes web and offline experiences and direct sales and education touchpoints. That means we need to measure it and budget for it just like other direct channels. All this should be welcome for both marketers and subscribers.

Have some good advice that we missed? Please add a comment and take part in the conversation.

Have a question for the Voices of Email? Email Chad your question at chad@emailexperience.org and we'll REPLY TO ALL by posting the answers so everyone can benefit.

–>Read other Reply to All posts

Before DMA07, we solicited questions from our members and subscribers, promising to post them in our booth at the show and recruit email experts in attendance to answer those questions. We got some great questions and tons of great answers:

1. How important is it for email creative to match the same look and feel as the order page/landing page?

Marc Pitre, Wampower.com: It's critical to keep the branding consistent between emails and landing pages. Both the creative and the message itself must be consistent to be impactful to the end viewer. It's too easy to dilute your message, so keep it consistent.

Andrew Osterday, Premiere Global Services: Landing pages are often ignored or an afterthought, but can have a strong impact on conversion. The flow from email to landing page should be seamless in both messaging and look and feel. Consider custom landing pages rather than linking to the site.

Stephanie Miller, Return Path: Very. Especially in promotional messages and prospecting. Be sure that the offer in the email is front and center—don't make me scroll. Using a custom landing page can improve conversion rates up to 50%. Definitely worth the investment in optimizing landing pages—they are the fulfillment of the promise created in your email message and it should be a seamless experience.

Michael Fishers, Alterian: It is very important—lack of matching in look and feel produces confusion, feels uncoordinated and impacts response accordingly.

Joel Book, ExactTarget: Providing creative continuity between the email and the associated landing page is vital for driving response and conversion. According to Forrester Research, "92% of business decision-makers go online to research products and services before buying offline." By using email to deliver relevant offers to customers, marketers are accelerating the buying process. The key is to make it easy for the customer to buy—having consistent look and feel for email and landing page achieves this objective.

2. Do the same elements found in traditional printed letters (salutation, closing, signature, p.s.) work for emails?

Melinda Krueger, Krueger Direct: Yes, to the extent that they reflect a personal, one-to-one approach to communication. Corporate "billboards" are easy to ignore; personal correspondence is not. Consider the "voice" and use the personal pronoun!

Elie Ashery, Gold Lasso: Yes, depending on personalized and relevant the message is. Personalization doesn't necessarily mean name, but rather actual content.

3. What do you consider best practice when it comes to accessing and changing email preferences? On one hand, it has to be easy for subscribers to go and edit their subscriptions. On the other hand, no one else than the subscriber should have access to change the subscriber's information. Do you recommend a login, a verification email with required action before changes take effect, a notification email notifying the subscriber that changes have been made, etc…?

Loren McDonald, J.L. Halsey: The simplest means is to include a link in the subscriber's email so that only they can click through to the preference center/update profile page. For sites that link registration (e.g., an ecommerce site), you can link the two processes. A notification email that confirms the changes is always a good idea.

Jeanniey Mullen, Email Experience Council and OgilvyOne: The preference center is a critical element of a successful email program. It can increase the life and engagement of your consumer. Keeping access to preference centers secure is critical but so is keeping access simple. Most companies offer encoded links to preference centers that allow you to bypass the logon elements. If you are using a secure center, password retrieval features are key.

Joel Book, ExactTarget: The key to using a preference center to gather customer needs and interests is to ask for only that data which is needed to deliver relevant and timely information through email. It is critical that you explain why you are asking for this information, how it will be used, and how the customer can update his/her profile. Remember, you are building trust.

Melinda Krueger, Krueger Direct: Consider a 1-2 punch. First capture the impulse to subscribe, then, as an optional second step, ask for more information. Consider offering an incentive (tied closely to your email value proposition) and explain that you are asking to avoid sending irrelevant emails.

4. Is there a proven happy medium between images and text in an email? Do too many or not enough images reduce response?

Elie Ashery, Gold Lasso: Email marketers today need to design their emails with the assumption that their recipients' have their email clients set with the images turned off. This means that the recipients should be understand the gist of the message without its images. Images should be used to enhance text, not replace it.

Chad White, Email Experience Council: The "happy medium" is per industry and depends on both your content and the reader in which the person will be viewing the email. For example, a B2B email that's likely to be read on a Blackberry should be all or mostly text. But retail emails where product images are so vital should be mostly HTML.

5. How can you tell if an email is being read in a preview pane only then deleted?

David Daniels, JupiterResearch: If someone clicks in a preview pane, can you hear them? It is all about behavior. If there are no clicks, there's no engagement, so attempt tactics for reactivation (survey, sweepstakes, etc.). The only real way to determine if an email has been read is by clicks.

Stephanie Miller, Return Path: Great question! Technically, there is probably not a way to get 100% pure data unless you put a "pixel" that is triggered by the scroll. However, you could track performance by proxy in one of two ways: (1) by putting a "morse type" link at the top (visible even when images are suppressed) that promotes the offer and "opens" the email, or (2) by analyzing clicks on text links below the fold which are not visible when images are suppressed. Frankly, I'm not sure why this measure is valuable if your preview pane is optimized, it will drive engagement, not a deletion.

Loren McDonald, J.L. Halsey: Open rates are tacked via a tracking 1-pixel image. So if images are enabled and a reader "views" the email (whether it is opened or not) it will count as an open. If images are blocked and the email is viewed in the preview pane (or fully opened), it will not count as an open. As a result, click-through rates are a much better gauge of email activity.

6. Can a newsletter sell or is it better for branding?

Jordan Ayan, SubscriberMail: Email marketing is about building relationships. If you approach it as a sales medium, you are looking at it from the wrong perspective. Can you sell with email? Absolutely, but for long-term success, you have to focus on delivering relevant content that highlights your brand and keeps recipients wanting more. Then they will give you permission to sell them electronically.

Kara Trivunovic, Premiere Global Services: A newsletter can sell if it is done right. The newsletter should be editorial in nature, with a majority of the content being relevant, value-add information. If sales copy is going to be included, it should be done as a soft sell, wrapped in editorial when possible.

Stephanie Miller, Return Path: Yes! Optimize to do both: (1) Educate customers about the full benefits of the products. (2) Engage subscribers to interact with your company, website, sales team, blog etc. (3) Lead prospects down the sales cycle by educating and asking questions.

7. Is it practical/realistic to budget for file growth from viral marketing? Can we count this as a tactic, or is it just "either."

Michael Salin, M.J. Salin & Associates: Yes! Emerging marketing genre are heavily based in viral practices…word of mouth, social networking. You should test and quantify viral programs – consumer talking to a consumer is the highest/strongest marketing communiqué. Quantify the send and free creative is a way to promote the idea.

Chad White, Email Experience Council: You can definitely budget for viral growth. In general, you can expect pass-along rates of 1%-2%, but it depends on the prominence of your send-to-a-friend links and how often you encourage readers to forward your emails. For instance, some retailers have "friends and family" event emails where part of the messaging encourages recipients to forward the discount offer to others. Doing emails like that will boost your pass-along rate.

8. If no legitimate ESP will allow the use of purchased lists in their system, how do data brokers and email appenders who focus on this market stay in business?

Craig Swerdloff, Postmaster Direct: Our experience has been that top-tier ESPs will send for lists that offer list rental, assuming certain requirements are met. They include explicit permission from recipients, proper list hygiene, good reputation scores, and compliant/unknown user rates within allowable thresholds.

Stephanie Miller, Return Path: The owner of the data sends the message on your behalf—so the initial mailing is from the data source inviting the subscriber to opt-in for email from you. Many marketers who send mail in-house, use internal append very successfully. There are best practices to ensuring your sender reputation is protected.

Loren McDonald, J.L. Halsey: List brokers manage the email databases for companies whose list members have agreed to receive third-party offers. The emails are sent "from" the list owner to the list member. Once the subscriber opts in to specific a marketer's program, they have given permission to the marketer. At that point, ESPs will allow the company to send to the subscriber.

9. What is the single most popular offer that drives people to register and share their information? We are desperately trying to collect emails from our customers and it's been very challenging.

Stephanie Miller, Return Path: As is true in all direct marketing, offer something perceived value for free. But the question should really be around how you can construct a powerful email experience that will entice and engage your prospects. While many will sign up for something that is free, your response and ROI will only come when the email program itself has consistent value.

10. What is the right frequency for retail email programs? It seems like many retailers are at 2x+ per week. Does not mailing at that frequency hurt my chances?

Austin Bliss, FreshAddress: Unfortunately, there is no "right" frequency. You should send on a schedule that provides value to your recipients—e.g. if you have daily sales, you can send daily. But if you have nothing to say 2 times a week, you shouldn't mail at that rate because you will have incurred complaints/unsubscribes.

Chad White, Email Experience Council: There are lots of factors to consider here, including the frequency at which your products tend to be purchased, the content of your email (both promotional and service-oriented content), the length of your email, etc. For example, Blue Nile emails once a month, recognizing that jewelry is not a frequent purchase. Home Depot, on the other hand, sends once a week, targeting subscribers' weekend projects. And then there's Neiman Marcus, which emails 7+ times a week, engaging its fashion hungry subscribers with info on new products, store events, discounts and video and article content.

11. If you send five or more emails to the same recipient and they aren't opened, does your domain/IP get reclassified as spam by the ISP? This obviously isn't standard across all ISP's. If this is in practice by some, which ones are they?

Stephanie Miller, Return Path: List quality is definitely a factor in sender reputation. Having a large number of non-responders on your file could reduce your "score" among ISPs/receivers. ISPs generally don't publish the "rules" that they use, as publishing them would expose them to abuse by spammers.

HAVE SOME INSIGHT TO ADD? Please comment below, just be sure to include the number of the question that you're answering.

The ExactTarget User Conference unveils the dawning of a new technological day, and re-inspires the market with email.

I attended Day 1 of the ExactTarget user conference (Connections 07) today and … Wow… is the best way to describe the event. With over 650 people in attendance (some were turned away), including over 75 agencies, the conference was a big hit.

Eec member Chip House, from ExactTarget, can do a much better job than me of giving you the details of the event, but I will say this: The commentary on ExactTarget's new partnerships, technological features and approach to email was inspiring.

I was personally involved in a panel on deliverability, which Chip moderated, and he deserves a big bottle of gin for dealing with all of us. After a fantastic opening, the panel was turned over to Craig Spiezle from Microsoft, David Daniels from JupiterResearch and me. We discussed the key issues everyone needed to know regarding the technical side of deliverability and reputation, the marketers' view of relevance, list hygiene and reputation, and the agency/consumer side of how to take all the knowledge and do something productive with it (like increase funding for email in your organization, or integrate delivery into the planning process). The content was top notch and even included, at no additional cost, a very nice improv from the three of us. Let's see, there were jokes about how Craig just never stops talking :-P, how David Daniels not only loves his Bloody Mary Deliverability cocktails, but how he is also God and controls the lights, just to emphasize his points. This was probably the most fun I have had on a panel in awhile—and the content was good too.

I've asked a few of the conference attendees to write me on Facebook and let me know how the next two days go. And I'd like to shout out to the ET team and ask them to share as much as they can from the conference with the eec community. It's great stuff!

—Jeanniey Mullen

Is it just my imagination or is there a resurgence in CAN-SPAM interest in the news recently? Between the INBOX session on "Getting Email into the Inbox," where we chatted on a couple-few issues related to what being CAN-SPAM compliant really means, to press coverage by Inc.com selecting a CAN-SPAM-compliance monitoring solution for a "Best for… Making sure your outbound mail works" award, it seems there's a surprising increase in interest in this topic. I checked with our own support team and lo and behold…higher volumes of questions last week about what it means to be CAN-SPAM compliant. It's gotten so bad our email policy director has taken it upon himself to write a white paper enumerating what it means and, more importantly, what it does not mean to be CAN-SPAM compliant.

Frankly, I find this all rather odd.

Odd because CAN-SPAM compliance should be called what it truly is…ineffectual legislation from the one part of our industrial economy that is least likely to produce efficient policies—the government. I hear folks intimate this all the time. CAN-SPAM compliance is the most negligible form of email marketing compliance that you can actually do. If you are building a program and infrastructure to effect CAN-SPAM compliance as your only goal, then by all indications you will essentially appear to be a spammer. You may ask yourself why that is, and while there are many reasons, it basically comes down to permission. CAN-SPAM doesn't require permission from the end user while the industry at large does.

Congratulations! You won't be able to get your email delivered but your CAN-SPAM compliance will be beyond reproach.

There are a great number of checklist items that EEC members in aggregate will advise people to do for effective email marketing. Certainly CAN-SPAM compliance is on that list. But always remember that this is very basic stuff that you simply have to do. In the way of a simile, it's like going out on a first date. You know you need to perform a set of personal hygiene acts. CAN-SPAM compliance is akin to just brushing your teeth and throwing cold water on your face. If you hope to get a second date or even a phone call, you need to put your best foot forward. The latest threads and a bit of cologne might be in order. Aiming for the bare minimum shouldn't be your goal and that is what CAN-SPAM is—the bare minimum.

—J.F. Sullivan

Sometimes you just want that extra bit of security. You want to own the "real deal." Depending on who you are, you might seek this out in different ways, such as buying a 4WD, off-road-ready vehicle even though you live in Manhattan, or a having a watch rated to depths of 50 feet, even though you don't scuba dive. What matters though is that should you want to drive through a muddy mountain pass or scuba with the watch on, you could! Most of us, however, never get to see our fanciest gadgets in action, so we really don't know if they work!

Thus far, most email reputation systems have been a bit like this, haven't they? Though they're rated to provide better deliverability, to qualify for the program you already have to have pretty darn good permission policies and list hygiene practices, and in turn pretty good deliverability.

Last week, the folks at Return Path upgraded their Sender Score Certified system to "go off-road." Along with the changes at Windows Live Mail (image suppression, increased use of throttling and bulk-foldering for new IP's, etc.), Sender Score Certified now provides some additional tangible benefits that marketers can see and feel.

Return Path also reported that those qualifying for Sender Score Certified will have their images enabled by "default" at Windows Live Mail/Hotmail and will enjoy more lenient daily throttling limits. Plus, certified senders will also have an "unsubscribe" button enabled by Windows Live Mail/Hotmail, providing the opt-out button that marketers have been yapping about for ages. The ESPC study from earlier this year shows that consumers are likely to use it, too. Per that study, 90% of respondents said they would use such a button "if it existed." Guess what folks, now it does. Want to reduce your complaints at Microsoft properties? Sender Score Certified is looking like a better way now than ever.

—Chip House